SDL 0.00% 0.6¢ sundance resources limited

make up your own minds

  1. 8,598 Posts.
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    Hi All.

    I sent an Email to Sundance Resources on 16/5/12,asking how the MOU's for rail and port would work.They had previously stated that funding could be included in the infrastructure contracts.
    I first asked on 6/12/2011.

    On 18/5/12 I got a reply saying they had answered my questions in December 2011.Their reply then was that I was wrong about them saying funding could be included.Left it then as not getting anywhere.

    On 18/5/12 I sent three E.mails quoting statements made by present and past Directors including an option for funding by MOU partners,and asking why we as shareholders were not told if funding was now not an option from the two Chinese MOU partners.

    I had no reply by the 5/6/12,so sent an Email asking,was I going to get a reply to my Emails.
    A reply came back saying they did not get my Emails.

    I re-sent the 3 Emails.
    One quoting a Corporatefile interview on 16/04/2009 with Don Lewis.It stated,Our preferred funding strategy for transport infrastructure is for third party design,construction and financing,which would move funding off balance sheet and leave the Company with much reduced financing obligations.

    Second instance.Sundance Resources 2010 Development Milestones on page 28.Secure financing terms in partnership with strategic partners.
    Develop potential infrastructure build-operate-finance packages.Execute sales terms sheets and off take contracts Close equity and debt financing.

    Third.Inside briefing 17 September 2010 interview with Sundance Resources Chairman Mr George Jones.
    Page1.We now have agreements with two of China's leading infrastructure providers,giving us access to their highly -skilled teams of engineers,artisans,financial experts and construction specialists in scoping out and potentially FUNDING and developing this infrastructure.We believe this will make Mbalam an extremely bankable project.

    Page 2.I'm pleased to say that our discussions with strategic partners are also now well advanced and we are currently actively negotiating on several fronts to secure both off-take contracts and project FINANCE with steel mills.We are aiming to have all these foundation agreements in place before the end of the calendar year to enable us to start construction by the middle of next year.

    Page 3 George Jones.
    We are exploring several models for bringing participants into the Project.A number of steel mills have expressed interest in project equity.We would be happy to grant equity in the Project in return for securing long term off-take agreements and a guarantee of project finance.Key rail and port infrastructure is likely to be via an EPC9 engineering procurement and construction contract.although some infrastructure providers are willing to look at DEDICATED FINANCING and/or Build Own Operate Transfer arrangements.This will be further fleshed out in the coming months under the MOU arrangements with CRCC China-Africa Construction Limited and China Harbour Engineering Company Ltd.

    On June 5th a reply stating.
    In the past we had referred to a possibility of the contractors providing some of the debt for infrastructure but never stated it would be the full amount.The difficulty with this approach is that it would require the funders of the constructors to work with the developers banks and would add several years in putting into place project financing.In addition due to complexity of the 2 country development lenders for infrastructure would require exorbitant prepayments for the contracts to ensure their investment was protected.

    The MOU's we entered into with China Harbour and China Rail covered engineering and construction only and do not envision any finance being provided by either contractor.
    Very different to what they stated in the 3 examples above.

    I will leave it to you share holders to say,have we been up dated on all changes to future plans for finance?

    Did they or did they not,indicate that FUNDING could/would be possible from MOU partners,they were in talks with the MOU partners about it?

    Are the Company Executives being fully open with share holders about what is going on behind closed doors?

    When investing in a company,I do my research,including reading Company Announcements.I then rely on the Company to keep me informed on any changes to strategy for projects,funding etc.Have they kept me informed about any change to the future of the Companies direction and financing options?

    Regards
    Westcott.



 
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